$8 Billion of US Climate Tech Projects Have Been Canceled So Far in 2025

upstart writes:

Battery, solar, and wind projects are getting killed in record numbers:

This year has been rough for climate technology: Companies have canceled, downsized, or shut down at least 16 large-scale projects worth $8 billion in total in the first quarter of 2025, according to a new report.

That's far more cancellations than have typically occurred in recent years, according to a new report from E2, a nonpartisan policy group. The trend is due to a variety of reasons, including drastically revised federal policies.

In recent months, the White House has worked to claw back federal investments, including some of those promised under the Inflation Reduction Act. New tariffs on imported goods, including those from China (which dominates supply chains for batteries and other energy technologies), are also contributing to the precarious environment. And demand for some technologies, like EVs, is lagging behind expectations.

E2, which has been tracking new investments in manufacturing and large-scale energy projects, is now expanding its regular reports to include project cancellations, shutdowns, and downsizings as well. From August 2022 to the end of 2024, 18 projects were canceled, closed, or downsized, according to E2's data. The first three months of 2025 have already seen 16 projects canceled.

[...] Some turnover is normal, and there have been a lot of projects announced since the Inflation Reduction Act was passed in 2022-so there are more in the pipeline to potentially be canceled, Turner says. So many battery and EV projects were announced that supply would have exceeded demand "even in a best-case scenario," Turner says. So some of the project cancellations are a result of right-sizing, or getting supply and demand in sync.

Other projects are still moving forward, with hundreds of manufacturing facilities under construction or operational. But it's not as many as we'd see in a more stable policy landscape, Turner says.

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